What a difference 2 months make... Fed's Yellen (12/17): "The decline we've seen in oil prices is likely to be, on net, a positive." Fed's Yellen (02/18): "Persistently low oil prices could dampen the overall expansion of economic activity." December 17th (via CNN Money): The dramatic plunge in oil prices might be spooking some investors, but Janet Yellen isn't worried at all. The Federal Reserve chief believes oil tumbling below $55 a barrel is like a tax cut for American consumers. "From the standpoint of the U.S. and U.S. outlook, the decline we've seen in oil prices is likely to be, on net, a positive," said Yellen at a press conference on Wednesday. "It's good for families, for households. It's putting more money in their pockets," she said. ... "On balance, I would see these developments as a positive," she said. February 18th (via FOMC Minutes): "Several participants noted that there were signs of layoffs in the oil and gas industries, and that persistently low energy prices might prompt a larger retrenchment of employment in these industries. In addition, it was observed that if capital investment in energy-producing industries slowed significantly, it could damp the overall expansion of economic activity for a period, especially if the slowing took place after most of the positive effects of lower energy prices on growth in household spending had occurred." And then you have this: BoC Cote (02/19): "Low oil prices are unequivocally negative... have broad impact on economy... negative effects happen quickly." * * * It appears he (and the latter Yellen) may be right? * * * And this is the woman we trust to run the world?